Which of the following types of mutual funds best describes one in which an "expert" seeks to pick the stock holdings in a way that maximizes the rate of return?
A) indexed equity mutual fund
B) managed equity mutual fund
C) supervised equity mutual fund
D) marked equity mutual fund

Question

Quizplus · Accepted Answer

A managed equity mutual fund involves an expert or team of experts actively selecting which stocks to buy and sell in an attempt to generate higher returns than the overall market. An indexed equity mutual fund, on the other hand, tracks a specific stock index and does not involve expert stock picking. Supervised equity mutual fund and marked equity mutual fund are not commonly used terms in the mutual fund industry.

Which of the Following Types of Mutual Funds Best Describes